Outcome of Meeting held on May 10, 2025 is attached
Awaiting price reaction for this filing.
The board of SRM Energy approved the audited financial results for Q4 and FY ended March 31, 2025 on both standalone and consolidated basis. The statutory auditor, Saini Pati Shah & Co LLP, issued a qualified opinion, flagging that the company has no business operations, is continuously incurring cash losses, has fully eroded net worth (negative Rs 410.23 lakhs standalone / negative Rs 4,646 lakhs consolidated), and faces material going concern uncertainty. Standalone FY25 net loss was Rs 38.24 lakhs (would have been Rs 170.24 lakhs if the Rs 132 lakh investment in subsidiary SETPL were impaired); consolidated loss was Rs 39.20 lakhs. The wholly-owned subsidiary SETPL has a SEBI attachment order for Rs 4,326.56 lakhs related to a loan from Mr. Gagan Rastogi and its CIRP application is pending at NCLAT with next hearing on May 27, 2025. The board also re-appointed M/s A S N & Company as Internal Auditor for FY 2025-26. An emphasis of matter notes fraudulent activities being carried out in the company's name through unauthorized channels, which the company publicly distanced itself from in December 2024.
Highly negative for shareholders — the company is a non-operating, loss-making shell with fully eroded net worth, qualified audit opinion, going concern doubt, a distressed subsidiary under insolvency proceedings, and a large SEBI attachment order. The stock carries significant risk; the qualified opinion and audit qualifications may draw regulatory scrutiny and investor caution.